| CODE | INS5005 | |||||||||
| TITLE | Actuarial Financial Mathematics | |||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | |||||||||
| MQF LEVEL | Not Applicable | |||||||||
| ECTS CREDITS | 10 | |||||||||
| DEPARTMENT | Insurance and Risk Management | |||||||||
| DESCRIPTION | Study-unit Aims: The aim of this study-unit is to equip students to take-on roles that require quantitative skills in finance and insurance. The study-unit provides a strong background to students to enable them to follow further actuarial qualifications with The Institute and Faculty of Actuaries, The Casualty Actuarial Society or The Society of Actuaris. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: i) Define the cashflows and aims of different financial products; ii) Demonstrate how interest rates may be expressed in different time periods; iii) Explain time value of money; iv) Identify and define compound interest functions; v) Explain the term structure of interest rates, duration and convexity of cashflows; vi) Assess the viability of immunisation of cashflows; vii) Define the equation of value for a range of practical problems; viii) Explain the log-normal distribution and other independently and identically distributed rates of return; ix) Compute the delivery price and value of a forward/future contract. 2. Skills By the end of the study-unit the student will be able to: i) Explain financial contracts; ii) Describe, interpret and discuss theories of interest rates; iii) Explain discounting with probabilities; iv) Demonstrate the ability to manage liabilities with assets through immunization techniques and hedging. Main Text/s and any supplementary readings: Garrett, S., (2013). An Introduction to the Mathematics of Finance [2nd Edition] ISBN: 9780081013021.Butterworth-Heinemann. 19th June 2013. |
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| ADDITIONAL NOTES | Pre-Requisite qualifications: INS2090 or INS3100 or a strong mathematical background at A' Level standard | |||||||||
| STUDY-UNIT TYPE | Lectures, Practical and Tutorials | |||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Simon Agius Matthew Attard Konrad Farrugia Simon Grima (Co-ord.) Andrea Taylor-East |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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